Binance Faces Scrutiny as Senators Request Information on Business Operations – Crypto Clampdown Incoming?
Three US senators have asked Binance and its US partner Binance.US to provide detailed information regarding their business operations amid accusations of illegal practices.
In a letter dated Wednesday, Senators Elizabeth Warren (D-Mass.), Chris Van Hollen (D-Md.), and Roger Marshall (R-Kansas) asked Binance "to provide transparency about potentially illegal business practice," while accusing the exchange of being a "hotbed of illegal financial activity."
The letter, addressed to Binance CEO Changpeng Zhao and Binance.US CEO Brian Shroder, requested details of the company's balance sheets, internal procedures, compliance and risk management practices, and any communications about alleged efforts by CZ to limit compliance.
"In the years since Binance’s founding, the company has faced increasingly disturbing allegations regarding the legality of its operations," the letter said, citing a series of investigations by Reuters and some other media reports.
The senators added that the exchange and its related entities have "purposefully" evaded regulators, facilitated the transfer of assets to criminals and sanctions evaders, and concealed basic financial information from its customers and the public.
The letter also touched on the catastrophic collapse of FTX, once the third-largest cryptocurrency in the world that failed in November last year, saying that it “underscored the need for real transparency and accountability in the crypto industry."
In a comment to CryptoNews.com, a Binance spokesperson said "a lot of misinformation has been spread about our company, including in several of the articles heavily cited in the letter, and we look forward to correcting the record in our official response."
Meanwhile, a spokesperson for
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